Reels continues to reel in digital advertising, prompting one Wall Street analyst on Tuesday to jack up his price target for Facebook parent Meta Platforms Inc. to the highest on the Street, an eye-popping $360 a share.
“The broader online advertising market is stable-to-improving based on our attendance at the CannesLions Festival of Creativity last week,” Citi Research’s Ronald Josey said in a note to investors in which he pegged Meta
META,
+3.08%
as a a top stock pick. His prior price target was $315.
Leading the charge is Reels, whose ad loads, along with Instagram’s, are expected to bump up Meta’s ad sales by 14% in 2024, according to Josey. He estimated that Reels, a short-video platform that competes with TikTok, will haul in $10.5 billion next year.
The potential of artificial intelligence, as well as an improving digital-ad environment, could also lead to higher-margin ad growth going forward, Josey wrote.
Shares of Meta are up 1.5% in early morning trading Tuesday.
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